Musk previews new Model Y Tesla

TESLA will show off its new Model Y compact SUV this afternoon at 2pm.

The Model Y is expected to be built on the same platform as the Model 3 and share many of its components.

Expect the Y to resemble a smaller version of the Model X SUV but without the controversial "falcon wing" doors.

The Y will share a number of components with the 3 but is expected to have slightly less range due to increase in weight from the SUV body.

There are likely to be a number of variations available, including all-wheel drive dual-motor versions and single-motor rear-wheel drive layouts. The Y is likely to have different battery options, giving a wide variety of ranges and prices.

Tesla has not given exact pricing for the Y but the company's chief, Elon Musk, has previously tweeted that the Y should cost about 10 per cent more than the 3 because it's 10 per cent bigger.

However, there has been no promise of an equivalent to the headline-grabbing US$35,000 ($49,000) Model 3 standard range. Tesla and Musk have been under constant pressure to lower costs to make the Model 3 feasible at that price range.

The popularity of SUVs means the more affordable Y should be brand's most popular model.

The Y is expected to be built on the same platform as the 3.

However, don't expect the Y on the road any time soon, as production is not tipped to start until next year. It could take several years for the vehicle to arrive in Australia, especially if it follows the precedent set by the 3.

Potential Australian buyers of the 3 are still waiting for their vehicles after placing a $1500 deposit on them in March 2016. Tesla has been unable to give an exact time frame on delivery dates for the 3 locally simply saying the first orders are expected to be filled in the middle of this year.

The first Australian deliveries of the Model 3 are expected in the middle of this year.